By Simona Tessaro
Despite all the negative articles and doomsday predictions that have started to circulate around South Florida, the latest report by the MIAMI Association of REALTORS® (MIAMI) shows a different picture with a steady increase of median prices and dollar volume year-over-year in January for single-family home sales in Miami-Dade county, with single-family home sales rising 4.4 percent, while Median sale prices ($310,000) and dollar volume ($397 million) expanded 14.8 percent and 7.1 percent, respectively in January 2017.
The Miami single-family homes market is coming off a 2016 in which it posted the third-most annual sales in county history. Sales for mid-market Miami single-family homes, or properties with a value between $200K and $600K increased 22.5 percent in January, from 476 to 583. Homes in this range represent 33.7 percent of total Miami single-family home sales, while sales for Miami single-family homes listed from $600,000 to $1 million increased 62.3 percent in January, from 53 to 86 transactions.
Despite a decrease of 9.8 percent year-over-year in existing condo sales (which are competing with a robust new construction market) Total existing Miami-Dade County residential sales, which posted a record year in 2013 and near record years in 2014 and 2015, decreased 3.3 percent year-over-year from 1,790 to 1,731.
As Christopher Zoller, the 2017 MIAMI chairman of the board says “Miami real estate opened 2017 with strong sales for single-family homes. There is high demand for homes priced from $200,000 to $600,000 and as reflected in our January statistics, we are also seeing Miami single-family home sales for properties from $600,000 to $1 million showing strong gains.”
Miami-Dade County single-family home median prices rose 14.8 percent in January 2017, increasing from $270,000 to $310,000. This represents a steady rise for 62 consecutive months. Existing condos increased 8.4 percent, from $205,000 to $222,250. Condo prices have increased in 66 of the last 68 months.
Despite the rise in prices, Miami real estate remains a great bargain compared to other major cities in the world. A condominium in Fort Lauderdale-Miami Beach cost $170,000 in the third-quarter of 2016, according to the National Association of REALTORS® (NAR). The average cost of a 120 square meter apartment in 2016 in the prime inner city areas of London was $4.1 million, Hong Kong $3.1 million, and New York $2.2 million according to Global Property Guide.
Total Miami distressed sales declined 44.7 percent year-over-year, from 398 to 220 last month. Only 12.7 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 22.2 percent in January 2016. In 2009, distressed sales comprised 70 percent of Miami sales.
Cash transactions comprised 43.4 percent of January total closed sales, which reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.
Finally Miami-Dade shows a very healthy new construction scenario, with most preconstruction condo developers requiring a 50-percent cash deposit on new units. The deposit is not only one of the highest in the United States but is significantly higher than the 20 percent required during the last real estate cycle. The large cash deposits show how committed Miami’s preconstruction condo buyers are to the local market and complete the positive snapshot of the Miami Real estate market.